Indian Entrepreneurs who Failed Before Tasting Success
Not all startups sail through. Not all entrepreneurs are fortunate enough to see and taste success. All of them strive, seek and don’t give up till the last breath. Instances of failure could be many and there could be so many ideas which might have lasted only a day or dreams which could not be realized into reality.
But all of them prove that there are risks involved in being an entrepreneur and success might come as an unexpected guest. In majority of cases, success could be visiting occasionally or in phases keeping the spirits alive. In some cases, however hard entrepreneurs try, stubborn success does not even care to show up.
Here we would not be naming entrepreneurs or point out their failures or elaborate on their poor show but would list who and what type of entrepreneurs are more likely to fail and what lessons budding startups could take from them.
Theory of Causality – There Is Certainly A Reason
If any entrepreneur fails, there might be a strong reason behind the failure. It could be anything. From bad judgement, faulty execution, inability to face truth, resistance to change, unable to upgrade etc. anything could be the reason. The worse among these which is unlisted is faulty idea – the very business idea. Yes, the not all business ideas are feasible and not all could promise success. Some might assure decent results while some don’t. On the other hand, there are some business ideas which are nearly impossible to deliver desired results, not at least in the time frame they were supposed it.
Why Entrepreneurs – Startups Failed???
When something wrong happens in the farm and seeds do not germinate or plants fail to fruit, the farmer takes every possible measure to contain the crisis and so are the researchers who keep a close eye on rise and fall of startups in India.
Researchers have found that more than 40 per cent of startups failed due to a faulty business model and majority of them were in Delhi and Gurugram. There was carnage of startups in 2017 following GST rollout, demonetization, weak economy. 2017 has son become popular as the Year of Startup Shutdown. Researches also revealed that most of the startups failed not because of lack of funding. Another important discovery was that startups in the ecommerce sector received the biggest blow. As per another survey around 25 per cent Indian startups could not see light of the day and succumbed to lack of follow-on funding.
Who Got Hit Wicket and Who Got Bowled?
It rarely matters how miserably an entrepreneur failed as failure is in fact failure. It is observed that those people who set out on this journey unprepared are more likely to receive a set back than those who keep a strategy for any unforeseen calamity during the course.
Well, introduction of GST was predicted but demonetization left people aback. However, those who were going by the books from day 1 did not feel it and it was just another economic reform for them. But demonetization had greatly impacted demand in various sectors due to which economy started to go sluggish.
In such a situation, when demand had plumped and there were no signs of recovery, it became highly impossible for some entrepreneurs to sustain further and they backed out. On the other hand, some struggled to the last breath and were forced to shut down as they feared to go bankrupt.
Several entrepreneurs have told stories of their failure on Quora and it seems that it is not just economy, lack of funding, follow-up funding but bad business model and lack of support from family, friends have also contributed to their untimely startup shutdown.
Why Entrepreneurs Fail – Lessons Learnt
Some of the startups that could not resist the bad weather in 2017 include Cardback, Stayzilla, Taskbob, Finomena, Overcart, Roomstonite, Shopo, Turant Delivery and Tolexo. So why their entrepreneurs failed or they just succumbed to flagging sales, underperformance or the crushing winds of demonetization. Whatever be their reason, these failures have set lessons for the startups.
- The word of advice includes that most of the shutdown were partial. It means that the businesses stopped one of their business models and preferred to focus on some core areas.
- Keep track of your initial funding and open up new channels for continuous inflow of money so that things go on until a sustenance level is reached.
- Do not hurry. Researchers have often found that most startups failed due to funding or others issues but their shutdown could have been avoided if their entrepreneurs had not hurried things to close down and pack up.
- If your business model requires larger working capital then keep digging until you find a perennial source of funding of course until you achieve self-sustenance.
- Don’t give up. It is also observed that some startups have given up to competition and the larger fishes of their industry have consumed them. It wise not to give up until there is too good a proposition.